Huntsville gazette., 1887-06-18
THE CORNER BROKEN.

Lovers of the Fragrant Intrusion will Re-
joice to Learn that the Coffee Corner is
Broken-Fortunes Won and Lost by
Those Who Manipulated the Market
The Failures.
NEW York, June 14-There was panic
in the coffee market yesterday caused by
the recent heavy fall in prices. Three
prominent houses were forced to suspend.
They were Arnold & Co., No. 81 Wall
street; Norton, Weyl & Bevan, No. 100
Water street, and Mackey & Small, Front
street and Jones Lane.
B. G. Arnold, OF Arnold & Co, ex-
planned the cause OF his firm s.suspension
as due to the fact that his numerous cli-
ents in Europe and Rio de Janerio could
not be called upon in sufficient haste to put
up their margins. The firm does a COM
mission business entirely, and the i'm
mense size of their outstanding orders
made it impossible for them to put up
sufficient sums to tide over the panic.
The liabilities and assets he is unable to
give.
Norton, Weyl q Bevan state that the
suspension was due to the existing de-
preston in prices, augmented by the
failure Of other firms in the trade. Mac
key & Small are in the same position.
Coffee has fallen from % 40-100 cents to
Is 40-100 cents per pound, representing
drop of about thirty cents on the dollar.
Nothing but vast capital was abl0 to with
stand the call created by such differ
ence on firms having large orders out on
the wrong side of the market. 1t is fear
ed that other houses will go down to-day.
The liabilities of Arnold & Co. are said to
about $3.50, ,000, and of the other two firms
about S5O0,000 together. Arnold & Co.
were one of the largest houses in the
trade. B. G. Arnold was the founder of
the Coffee Exchange, and has been IN
business here since 1849. In is so the firm
failed for 50, $50 900, but paid sixty cents
on the dollar.
Joseph j. O'Donohue & Son yesterday
had the satisfaction Of saving the market
from a total ruin by bidding in about TO-
600 bags at 15.E0. thus checking the panic,
and causing a recovery by 125 points.
When the substantial house of O'Donohue
q Co. began their bidding a great cheer
went up in the exchange, for it was con.
sldered both pluclzy and magnanimous on
their part. Mr.. OiDonohue was seen later
in the day.
"Yes,'' he said, ''it has been day OF
great excitement, and L shall be right glad
when it is over. Yes, it's true | came to
the rescue, and bought 10000 bags OF
coffee. w. II. Crossman & Brothers and
ourselves purchased some 100000 bags
during the afternoon"
"Do you expect any more failures:"
was asked.
II don't know but hope not, though |
am waiting on the anxious seat for some
parties that have not yet come to time'
R. G. Arnold's pr ominence in the pres
SO, ~ f1a% +Lz% T.
was recognized as the repre- sentative OF
the Brazilian syndicate which has had re-
cent control of the market. This svndic-
ate is supposed to include Messrs
Phipps & Co, and g. Amsinck & Co, Of
New York and Rio, and Messrs. Berloca-
trim & Co., John Bradshaw & Co. and
others, Of Rio. In this connection brief
history of the speculation will be of in
terest: ..
In April, 1885, Messrs J. j. O'Donohue
Il Son, W. H. Crossman & Bros. and sew
eral Havre brokers secured possession OF
five hundred thousand bags or more OF
the coffee in market. and manipulated the
market so that by April last they were
able to get out with a profit averag ging
seven and one-half cents per pound. The
net profits of the deal were about s., 900,
the prospect of short crop for 1861.
The crop for 1856 was 5, 565 900 bags,
and when the syndicate saw in April last
that the receipts at R 0 were 100000 bags
per month, and the crop for the cur.
rent year promised to be large.
ly in excess of the year
previous, they let go all their holdings,
but in a careful way, SO as not to break
prices and lessen their profits. Then the
Brazilian syndicate came into the mar
ket. 1t is said by those who have watched
the market that they held 100, 900 bags,
and that the members have, inside of
three or four days, been called upon for
&, SOC, 900 cash for margins. 1t was this
syndicate Mr.. Arnold represented in the
trade. They have had most complete
control of the market since they began
operations, and ran the price of coffee up
to twenty-one and twentythree cents. 1t
is believed some Of the members haye un-
loaded, and that the holdings are much
less than when the break began.